Real Estate Execution Wins
Execution is king and is the most important part of your Real Estate Investing business. You have to execute in your real estate deals.
Imagine a 2 sided weighing scale... On one side you weigh your level of education/knowledge and on the other side you weigh the amount of action you take. The goal is for both sides to be weighed evenly. You don’t want to constantly be over-educating yourself and never take the leap into action. On the other hand, you don’t want to be an extreme action taker without first educating yourself.
If you jump into a bunch of deals without knowing what your doing, they could all come crashing down. That’s irresponsible and you can hurt people by doing it that way. So you need to educate yourself in this space, along with taking action, simultaneously. The more you know, the more deals you do.
To go back to the word “execution,” it’s extremely important to hone in on all sides of a real estate transaction: the buying side, the selling side, the business side, the financial side (which is the most important). What exactly are all your purchase costs, financing costs, construction costs, holding costs, overage costs and selling costs? There are so many different thing you need to pay attention to.
Business is not based on the number of deals you do. It’s not impressive to me when someone tells me how many deals they do. I want to know how profitable each deal they’ve done has been. Profitability of a deal is the most important thing. If you’re extremely profitable, you’re hitting your numbers, you’re not going over your construction budget, you’re doing exactly what you planned than you are executing properly. Become great at executing. If you can’t execute one deal properly, you’re not going to be able to execute on multiple deals at a time.
Really concentrate on all your numbers, start with a few deals at a time. Hone in on your rentals, your wholesales and your flips—every type of real estate transactions. Become a master at execution. Make sure your financials and numbers are on point from what you projected. If that’s the case, keep moving up and becoming more profitable and successful.